Adjusted operating earnings were $715 million in the third quarter, up 50 percent from $476 million in the year-ago period. Nine-month earnings totaled $2.58 billion, a 55 percent increase over last year’s $1.66 billion.

Net earnings for the quarter on a U.S. GAAP basis were $650 million, up 42 percent from last year’s $459 million. Nine-month net earnings were $2.49 billion, a 5 percent increase year-on-year. In the prior-year period, Cargill realized large gains from business divestitures, which are excluded from adjusted operating earnings.

“We had strong results this quarter across our segments, evidence that we are on the right path forward,” said David MacLennan, Cargill’s chairman and chief executive officer. He cited gains in food ingredients, animal protein and industrials, as well as the progress of teams around the company to bring customers the full benefits of what Cargill has to offer. “All 150,000 people who work here are focused on executing at a high level as we serve our markets in an integrated way. We are eager to keep pursuing the opportunities that we are seeing.”

Segment results

With strong improvement over last year, the Food Ingredients & Applications segment was the largest contributor to adjusted operating earnings in the third quarter, with gains in sweeteners globally and plant-based bio-industrials in North America. A favorable product mix in salts for food applications also boosted results in North America, as did seasonal sales volume in deicing products. Cocoa and chocolate earnings rose on the strength of the European business, supported by origination in West Africa. The segment’s Asia-based business rebounded from a challenging year-ago period, lifted by good performance in corn-based starches and sweeteners in China and edible oils in India.

Earnings in Animal Nutrition & Protein rose significantly, lifted by strong performance in animal protein against a weak comparative period. Although below the earnings pace set in the first half, the North American protein business continued to benefit from renewed consumer demand for beef, which pulled more boxed beef and case-ready volume through its supply chain. It also realized steady foodservice demand for egg products. The poultry business gave protein results an additional boost, with higher cooked chicken exports out of Southeast Asia and improved processing yields and fresh chicken sales in Europe. Elsewhere in the segment, third-quarter earnings in global animal nutrition were below the year-ago level. Despite good performance in bulk feeds and premix products in India, Vietnam and other countries, sales volume softened due to competitive pressure in China and Russia, an avian influenza outbreak in Korea, and disruptive or unseasonable weather in other countries.

Origination & Processing earnings slightly lagged last year’s third quarter. The North America-based business remained a large contributor to segment earnings, thanks to steady grain export volumes; oilseed crush volume decreased late in the period as South America approached harvest season. Performance in South America trailed the prior year as the business dealt with reduced farmer selling and slowed processing in Argentina due to excess rain, as well as decreased corn exports out of Brazil due to last year’s drought. In contrast, segment earnings rose substantially in Asia Pacific, boosted by soybean crush activities in China, and grain origination and trading in Australia.

Cargill agreed to sell its 40 percent share in Allied Mills Australia, a flour milling joint venture, to Pacific Equity Partners, a Sydney-based private equity firm with investments in the bakery sector. With regulatory approvals in Australia received, the sale is expected to close early in the fourth quarter. Cargill remains committed to the food and agriculture sector in Australia, where it has played an important role since 1967.

Industrial & Financial Services put up a strong third quarter against a weak comparative period. Ocean transportation earnings rose sharply, aided by better market conditions in ocean freight, as well as in the mining and steel industries. Returns from asset management activities added to the segment’s improved performance. The energy businesses also contributed to the rebound.

Early in the fourth quarter, Cargill agreed to sell its petroleum trading business to Australia’s Macquarie Group, a global financial services provider based in Sydney. Pending regulatory review, the sale is expected to be completed in the first quarter of Cargill’s fiscal 2018.

Broad and positive impact

Cargill is working with its partners to nourish the world and protect the planet. The company released its first Report on Forests, marking an important step in its drive to end deforestation in its agricultural supply chains. The report details how Cargill worked with partner World Resources Institute to establish a baseline for measuring future changes in tree cover. The baseline incorporated a cross-commodity approach to mapping the sourcing areas for almost 2,000 Cargill locations across 14 countries. To do so, Cargill and WRI used Global Forest Watch, a cutting-edge tool that monitors forest cover via satellite. Although ending deforestation globally is complex, requiring both ambition and pragmatism from a diverse coalition of partners, Cargill is firm in its commitment to do its part.

To advance food and nutrition security, Cargill renewed its partnership with Feeding America, the largest hunger-relief organization in the U.S. A new three-year, $3 million grant will provide children and families with greater access to fruits and vegetables, nutrition education and diabetes prevention solutions. Cargill funding also will support food safety measures to ensure the highest quality of food distribution, as well as efforts to reduce food waste. Feeding America serves 46 million Americans with 4 billion meals each year; Cargill has supported the organization for 30 years.

In March, Cargill announced a three-year, $7 million extension of its longstanding partnership with CARE, a leading humanitarian organization fighting global poverty that places special emphasis on empowering women and girls. The partnership – which has improved the lives of 300,000 people in seven countries since 2013 – will focus efforts on strengthening rural agricultural communities by improving farmer productivity and livelihoods, market access, food and nutrition security, and community governance and education.

“Our purpose is to nourish the world in a safe, responsible and sustainable way,” MacLennan said. “We are proud of the broad and positive impact that arises from the combination of the work we do every day, our partnerships and contributions, and volunteering in our communities.”

Explanation of non-GAAP financial measure

Cargill reports financial results in accordance with U.S. generally accepted accounting principles (GAAP). The company additionally reports adjusted operating earnings, a non-GAAP financial measure that management believes provides additional insight into the underlying financial performance of the company’s ongoing operations. In calculating adjusted operating earnings, Cargill includes earnings from non-controlling interests and mark-to-market gains or losses on intercompany contracts between the Origination & Processing and the Food Ingredients & Applications segments. Cargill excludes the following seven items: timing differences related to inventory, derivatives and hedging; last-in-first-out (LIFO) inventory adjustments; amortization of intangible assets; gains and losses on changes in investment structure; asset impairment and restructuring charges; gains and losses on sales of businesses and other long-term assets; and earnings attributable to non-controlling interests of Cargill’s asset management subsidiary. For more information, visit https://www.cargill.com/about/financial/adjusted-operating-earnings.

About Cargill

Cargill’s 155,000 employees across 70 countries work relentlessly to achieve our purpose of nourishing the world in a safe, responsible and sustainable way. Every day, we connect farmers with markets, customers with ingredients, and people and animals with the food they need to thrive.

We combine 153 years of experience with new technologies and insights to serve as a trusted partner for food, agriculture, financial and industrial customers in more than 125 countries. Side-by-side, we are building a stronger, sustainable future for agriculture.